Pioneer Natural Resources (PXD) Stock Storming The Castle Today

Trade-Ideas LLC identified Pioneer Natural Resources (PXD) as a "storm the castle" (crossing above the 200-day simple moving average on higher than normal relative volume) candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Pioneer Natural Resources

(

PXD

) as a "storm the castle" (crossing above the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified Pioneer Natural Resources as such a stock due to the following factors:

  • PXD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $284.0 million.
  • PXD has traded 862,856 shares today.
  • PXD is trading at 2.49 times the normal volume for the stock at this time of day.
  • PXD crossed above its 200-day simple moving average.

'Storm the Castle' stocks are worth watching because trading stocks that begin to experience a breakout can lead to potentially massive profits. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock is then free to find new buyers and momentum traders who can ultimately push the stock significantly higher. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize on. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on PXD:

Pioneer Natural Resources Company engages in the exploration and production of oil and gas in the United States. The company produces and sells oil, natural gas liquids (NGLs), and gas. The stock currently has a dividend yield of 0.1%. PXD has a PE ratio of 36. Currently there are 21 analysts that rate Pioneer Natural Resources a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for Pioneer Natural Resources has been 2.2 million shares per day over the past 30 days. Pioneer Natural has a market cap of $20.5 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.50 and a short float of 6.6% with 4.51 days to cover. Shares are down 6.9% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Pioneer Natural Resources as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and weak operating cash flow.

Highlights from the ratings report include:

  • The current debt-to-equity ratio, 0.32, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that PXD's debt-to-equity ratio is low, the quick ratio, which is currently 0.61, displays a potential problem in covering short-term cash needs.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 33.1%. Since the same quarter one year prior, revenues fell by 27.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 45.07% is the gross profit margin for PIONEER NATURAL RESOURCES CO which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, PXD's net profit margin of -26.20% significantly underperformed when compared to the industry average.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 25.84%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 481.57% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
  • Net operating cash flow has significantly decreased to $328.00 million or 54.25% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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